FEATURE
RATES and
Long-Term
Sustainability
a
BY TERRY SMITH, MANAGEMENT SPECIALIST, RURAL WATER ASSOCIATION OF UTAH
Around 10 years ago, I replaced
the current car we were driving with an
almost new SUV. The old ride had over
a hundred thousand miles, which in that
era, was about as far as you wanted to
extend trust in one getting you from A to
B. We bit the bullet, plunked the money
down, and we were once again cruising
down the road, enjoying the all-too-short
smell and feel of a new vehicle. The open
highway beckoned me to keep on going,
to explore heretofore unknown points, to
live off the land, become a gypsy (today
at my age, I only get this feeling between
rest stops). However, the reality of my
bank account balance brought me back
to earth like a bag of cement hitting the
ground. I might get over the far horizon
today, but after that first vehicle payment,
I'd likely be using my thumb to get back.
Jump forward 10 years and once again
I find myself contemplating the need for
a vehicle upgrade. Nothing that has to
happen tomorrow, or even in the next
year, but something I need to be thinking
about (and to any used-car salespeople
that might be reading this, I'll give you a
call). Of course one of the chief factors
in keeping me from "new car nirvana" is
the cost reality of these things. Unless I'm
willing to downgrade to something like
one of those "smart cars" (the shape of
which reminds me of the shoes I put on
my kids when they were first learning to
walk), my personal finances are going to
require some serious evaluation. Perhaps
even to the point that I have to go there -
the dreaded "B" word - budget...
So why do I find this such a
challenge? Once upon a time I, more
or less, comfortably made a monthly
payment. We got by, no one starved,
and I was feeding two teenage boys
and a large dog at that time. Sadly, my
dog passed on a while back,
and while the boys are
no longer teenagers,
I'm still feeding
them more that
I thought I
would be at
this point. I tell
them I'll get
my payback
when I'm older
and living with
them, at which
point they laugh,
but I detect a glint of
concern in their eyes.
About six years back the
current vehicle was paid off, and the
money that we were using for that
payment simply began to evaporate.
Don't know where it went, can't
quite put my finger on it (I suspected
embezzlement, but any paper-trail I can
find turns back at me, so I quit looking).
I'm guessing that our standard of living
simply changed to accommodate the
extra funds - a few more dinners out,
movies, maybe a few things around the
house, etc. What I know is, about now
I'm wishing that I would have continued
that payment, or some portion of it, into
savings after the loan was paid off. Had I
done so, I'd have around $25,000 toward
the price of a new one. Not enough for
what I'll probably end up having to spend,
but a big chunk of the cost. This would
have allowed me to pay it off in about half
the time, and potentially save a bunch of
money on interest.
RURAL WATER
31

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